Vital Information related to Poor CIBIL score impact on personal loan application

CIBIL stands for Credit Information Bureau, India Limited is a three-digit numerical number or a numeric summary of your entire credit history. It denotes the borrower’s creditworthiness and one of the prime parameter used to determine the approval of the loan. The value of the CIBIL score ranges from 300 to 900 which are based on the information provided by banks and financial institutions on a monthly basis.

CIBIL scores depend on the repayments of the loans like personal loan, home loan, credit card bills etc. The credit score of the cardholder is good if all the repayments of the loan and bills of card done on time and on the other hand if the EMIs and due payments not pay on time then it will show negative impact on the credit score. The score less than 750 are considered as a low or bad CIBIL score.

While applying for the loan, CIBIL score is the first criterion to check the eligibility of a person for any type of loan by bank or any financial organization. Generally most of the bank do not offers personal loan for low CIBIL score applicants. A personal loan is a loan which is taken to fulfill the personal financial needs. In personal loan there is no collateral or security deposit to the lender so, for sanctioning the personal loan, lender always checks that the applicant is capable or not to pay the loan amount on time.

But one can also get a personal loan with the low CIBIL score. There are some financial institutions and banks which provide personal loan for the applicant having low or bad credit score, but under some terms and conditions which are as follows-

• Charges high interest rate 

As we know CIBIL score is the credit history of the applicant. If you are the applicant with low credit score then you have to pay more interest rate for personal loan than those who have the good credit score. Get more about personal loan at https://www.applykaroo.com/loans

• Short loan tenure

Loan tenure is the period or duration for which the loan was sanctioned. It is the period decided by the applicant as per its requirement. But in case of the low or bad credit score applicants the loan tenure decreased.

• Loan Quantum 

If the applicant have bad credit score then it’s become more difficult for them to get the more loan quantum. The banks and financial institutions offer the loan to them but the loan amount is not big or as per their demand or requirement.